Tough love for emerging markets has improved their resilience
- 30 July 2024 (10 min read)
In this note we consider how the structural improvements in EM over recent decades should coincide with an improving short-term growth environment, with global financial conditions looking set to ease over the coming years as the world – and specifically the US economy – passes beyond the inflation shock and central banks begin to ease monetary policy. This, combined with longer-term structural drivers, could see several EM economies supply the raw materials required for climate transition technology. Meanwhile the prospect of artificial intelligence (AI) offers unique opportunities for EM economies to accelerate institutional reforms by leapfrogging the resource-intensive methods of pre-AI developed economies.
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